XRP News Today: Ripple Lawsuit Update, SEC Appeal, and Forecast

The Friday Overview

On Friday, XRP slid by 4.48%. Partially reversing a 4.88% rally from Thursday, XRP ended the day at $0.6120.

SEC vs. Ripple: SEC Files Remedy-Related Opening Brief

There were no SEC v Ripple case-related updates for investors to consider. However, according to the court briefing schedule, the SEC had to file its remedy-related opening brief by Mar 22.

The opening brief relates to the July 2023 ruling on XRP sales to institutional investors. Judge Analisa Torres ruled that Ripple breached Section 5 of the 1933 Securities Act for selling unregistered securities to institutional investors. A redacted version of the opening brief will be publicly available on Mar 26.

The SEC will likely have argued for a punitive penalty to deter further breaches. Ripple must file its opposition brief by Apr 22.

Coinciding with the court filing, SEC Chair Gary Gensler delivered a speech at a Columbia Law School Conference. Chair Gensler discussed the crypto market and the need to register with the SEC at the end of a prepared speech, saying,

“There are participants in crypto securities markets that seek to avoid these registration requirements. No registration means no mandatory disclosure. Many would agree that the crypto markets could use a little disinfectant.”

The Gensler speech followed the increasing debate on the SEC approving the ETH-spot ETF applications in the May window.

ETH-Spot ETFs: Commodity or Security

Bloomberg Intelligence Senior ETF Analyst Eric Balchunas recently placed the odds of the SEC approving the first batch of ETH-spot ETFs at 25%.

On Thursday, Ripple CEO Brad Garlinghouse responded to a post on Twitter from Coinbase Chief Legal Officer Paul Grewal on the issue of ETH-spot ETFs, saying,

“The SEC picked fights with the industry and is losing badly in the Courts. They’re now fighting fellow regulators like the CFTC and falling behind international counterparts. At what point will the SEC realize they will lose the war against ETH just as they lost against XRP?”

Notably, Grewal referenced the William Hinman speech. Hinman said that Bitcoin (BTC) and Ethereum (ETH) were not securities in 2018. Grewal also highlighted Gensler testimony on Capitol Hill, where the SEC Chair said, on oath, that ETH is not a security.

ETH led XRP and the broader crypto market into negative territory on Friday. BTC-spot ETF market flow data and the diminishing chances of an ETH-spot ETF market impacted buyer demand for cryptos.

XRP Price Action

Daily Chart

XRP hovered above the 50-day and 200-day EMAs, sending bullish price signals.

An XRP return to the $0.62 handle could signal a bullish move toward the $0.6609 resistance level. A break above the $0.6609 resistance level could give the bulls a run at the $0.70 handle.

SEC vs. crypto case-related updates, SEC-related news, and crypto-spot ETF chatter warrant investor attention.

Conversely, a drop below the 50-day EMA could give the bears a run at the 200-day EMA and the $0.5740 support level. Buying pressure may intensify at the $0.5740 support level. The 200-day EMA is confluent with the support level.

The 14-day RSI reading, 49.62, indicates an XRP drop below the trend line before entering oversold territory.

4-Hourly Chart

On the 4-hourly, XRP sat below the 50-day EMA while hovering above the 200-day EMA. The EMAs sent bearish near-term but bullish longer-term price signals.

An XRP break above the 50-day EMA would support a move to the $0.6609 resistance level.

However, a drop below the 200-day EMA could signal an XRP drop below the $0.60 handle.

The 4-hourly RSI, with a reading of 47.96, suggests an XRP fall to the $0.5740 support level before entering oversold territory.